Refer to the Country Designs data set. Assume the company uses a standard cost accounting system.
Country Designs is a manufacturer of large flower pots for urban settings. The company has these standards:

Country Designs allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,300 flower pots:

Requirements
1. Record Country Designs' direct material and direct labor journal entries.
2. Record Country Designs' journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead accounts.
3. Record the journal entries for the completion and sale of the 1,300 flower pots, assuming Country Designs sold (on account) all of the flower pots at a sales price of $500 each. (There were no beginning or ending inventories.)

Transcribed Image Text:

Direct materials (resin) 13 pounds per pot at a cost of $4.00 per pound 4.0 hours at a cost of $17.00 per hour Direct labor . Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead. Standard fixed MOH rate. cost $7.00 per direct labor hour $50,000 $10.00 per direct labor hour (DLH) Purchased 18,510 pounds at a cost of $4.50 per pound; used 17,810 pounds to produce 1,300 pots Worked 4.5 hours per flower pot (5,850 total DLH) at a cost of $16.00 per hour $7.20 per direct labor hour for total actual variable manufacturing overhead of Direct materials Direct labor Actual variable manufacturing overhead $42,120 $49,500 Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production $52,000